This paper
offers a new perspective on why 'smart' innovation-led growth has not
led to 'inclusive growth'. It argues that there is a disproportionate
balance between the 'collective' distribution of risk taking in the
innovation process (e.g. 'open innovation'), and the increasingly narrow
distribution of the rewards.

Much of the current discussion about ‘rebalancing’ revolves around the need to reduce the size of the financial sector in favour of industrial policies that would help revive manufacturing. However, rebalancing also requires changing the dysfunctional influence that finance has had on indicators of economic performance in all sectors, including manufacturing.